Core Viewpoint - The report from CICC forecasts that Zhiyu (02513) will achieve revenues of 720 million, 1.75 billion, 3.67 billion, and 7.67 billion yuan from 2025 to 2028, with a CAGR of 120% [1] Group 1: Company Overview - Zhiyu is a leading large model vendor in China and globally, founded in 2019, focusing on the GLM series foundational models [1] - The latest foundational model, GLM-5, has achieved state-of-the-art (SOTA) performance in multiple benchmark scores and has received widespread acclaim from domestic and international users [1] Group 2: Revenue Growth and Business Model - The company is expected to see a revenue CAGR of over 130% from 2023 to 2027, driven by its MaaS platform and API revenue, which is projected to become a major growth engine [2] - By early 2026, the annual recurring revenue (ARR) from API-related services is estimated to approach 600 million yuan, reflecting several times growth compared to the previous year [2] Group 3: Market Potential and Competitive Advantage - The total addressable market (TAM) for AI Coding is estimated to reach one trillion yuan, with Zhiyu positioned to lead in this early penetration stage [3] - The company has core advantages in the Coding scenario, including low hallucination rates, high stability, and strong reasoning and tool usage capabilities, which are expected to help it maintain a leading position [3] Group 4: Differentiation from Market Perspectives - CICC's outlook differs from the market by emphasizing Zhiyu's foundational model capabilities and its ongoing leadership in the AI Coding space, which is likely to attract a broader domestic and international customer base [4] Group 5: Potential Catalysts - Potential catalysts for growth include the release of new generation models and high growth in API and Coding ARR [5]

Investment Highlights - Company is covered for the first time by CICC with an "outperform" rating and a target price of HKD 688.00, based on a forward P/S valuation method corresponding to a valuation multiple of 40 times P/S in 2028 and a discount rate of 7% [1] - Company is a leading large model vendor in China and a world-class player, founded in 2019, focusing on the GLM series foundational models, enhancing core capabilities in Coding, reasoning, and Agentic models [1] - The latest foundational model, GLM-5, has achieved state-of-the-art (SOTA) performance in multiple benchmark scores and has received widespread acclaim from domestic and international users [1] Revenue Growth Potential - The commercial value of the models is being realized, empowering various industries; revenue CAGR is expected to exceed 130% from 2023 to 2027 [1] - API revenue is projected to become the main growth engine, with estimated API-related annual recurring revenue (ARR) nearing CNY 600 million by early 2026, representing a several-fold increase compared to the same period last year [1] - Company covers a wide range of industries including internet, software, and chips, focusing on releasing model value to enhance client productivity [1] AI Coding Market Opportunity - The total addressable market (TAM) for AI Coding is estimated to reach a trillion CNY scale, with the company having a leading advantage in this rapidly penetrating field [2] - Company specializes in refining the Coding scenario, possessing core advantages such as low hallucination rates, high stability, and strong reasoning and tool usage capabilities, likely to maintain leadership in the Coding scene and extend to more enterprise scenarios [2] - Key catalysts include the release of new generation models and high growth in API and Coding ARR [2] Financial Projections - Revenue projections for the company from 2025 to 2028 are CNY 720 million, 1.75 billion, 3.67 billion, and 7.67 billion respectively, with a CAGR of 120% [2] - The company is expected to iterate on foundational model capabilities and realize value in the Coding scenario, with a target price of HKD 688 based on a 40 times P/S valuation in 2028, indicating a 42% upside from the current trading at 25 times P/S [2]

Core Viewpoint - The report from CICC expresses optimism about Zhipu's (02513) foundational model capability iteration and the realization of Coding scenarios, comparing its valuation to leading overseas large model companies, assigning an "outperform" rating with a target price of HKD 688, indicating a 42% upside potential from the current trading level [1] Group 1: Company Overview - Zhipu, established in 2019, is rooted in Tsinghua University's technological achievements, focusing on the development of the GLM series foundational models, enhancing core capabilities in Coding, reasoning, and Agentic models [2] - The latest foundational model, GLM-5, has achieved state-of-the-art (SOTA) performance in multiple benchmark scores, receiving widespread acclaim from both domestic and international users [2] Group 2: Revenue Growth and Market Potential - The company leverages its MaaS platform to deliver model capabilities, with projected revenue CAGR exceeding 130% from 2023 to 2027, driven primarily by API revenue, which is expected to approach RMB 600 million in annual recurring revenue (ARR) by early 2026, reflecting several-fold growth compared to the previous year [3] - The AI Coding total addressable market (TAM) is estimated to reach a trillion RMB scale, with Zhipu positioned to lead in this rapidly evolving sector, focusing on low hallucination rates, high stability, and strong reasoning and tool usage capabilities [4] - Zhipu's revenue projections for 2025-2028 are RMB 720 million, 1.75 billion, 3.67 billion, and 7.67 billion respectively, with a CAGR of 120% anticipated [4] Group 3: Catalysts for Growth - Potential catalysts for growth include the release of new generation models and significant increases in API and Coding ARR [5]

Core Viewpoint - The report from CICC is optimistic about Zhiyu (02513) due to its iterative capabilities in foundational models and the realization of value in coding scenarios, assigning an outperform rating and a target price of HKD 688, indicating a 42% upside potential from the current trading level [1] Group 1: Company Overview - Zhiyu was established in 2019, focusing on the development of the GLM series foundational models, enhancing core capabilities in coding, reasoning, and agentic models [2] - The latest foundational model, GLM-5, has achieved state-of-the-art (SOTA) performance in multiple benchmark scores and has received widespread acclaim from both domestic and international users [2] Group 2: Revenue Growth and Market Potential - The company is expected to achieve a revenue CAGR of over 130% from 2023 to 2027, with API revenue projected to be a major growth driver [3] - By early 2026, the annual recurring revenue (ARR) related to APIs is estimated to approach CNY 600 million, reflecting several times growth compared to the same period last year [3] - The company serves various industries, including internet, software, and semiconductors, focusing on enhancing productivity through model capabilities [3] Group 3: AI Coding Market Opportunity - The total addressable market (TAM) for AI coding is projected to reach a trillion CNY, with Zhiyu positioned to lead in this rapidly evolving sector [4] - The company emphasizes its strengths in coding scenarios, including low hallucination rates, high stability, and strong reasoning and tool usage capabilities, which are expected to maintain its leadership [4] - Revenue projections for Zhiyu from 2025 to 2028 are estimated at CNY 720 million, 1.75 billion, 3.67 billion, and 7.67 billion, respectively, with a CAGR of 120% [4] Group 4: Potential Catalysts - Potential catalysts for growth include the release of new generation models and significant increases in API and coding ARR [5]

Core Viewpoint - The report from CICC is optimistic about Zhiyu (02513) due to its foundational model capability iteration and realization in the Coding scenario, positioning it against leading overseas large model companies. The company is given an "outperform" rating with a target price of HKD 688, indicating a 42% upside potential from the current trading level [1][5]. Group 1: Company Overview - Zhiyu was established in 2019, focusing on the GLM series foundational models, enhancing core capabilities in Coding, reasoning, and Agentic models. The latest model, GLM-5, has achieved state-of-the-art (SOTA) performance in multiple benchmark scores and has received widespread acclaim from both domestic and international users [6]. Group 2: Revenue Growth Potential - The company is expected to achieve a revenue CAGR of over 130% from 2023 to 2027, driven by its MaaS platform that outputs model capabilities. API revenue is projected to become the main growth engine, with an estimated annual recurring revenue (ARR) related to APIs nearing 600 million yuan by early 2026, reflecting a several-fold increase compared to the same period last year [7]. Group 3: Market Opportunity - The total addressable market (TAM) for AI Coding is estimated to reach one trillion yuan, with Zhiyu having a leading advantage in this space. The company focuses on refining the Coding scenario, boasting low hallucination rates, high stability, and strong reasoning and tool usage capabilities. This positions Zhiyu to lead in the Coding scenario and extend into more enterprise applications. Revenue projections for Zhiyu from 2025 to 2028 are estimated at 720 million, 1.75 billion, 3.67 billion, and 7.67 billion yuan, respectively, with a CAGR of 120% [8].

Investment Rating - The report maintains a positive outlook on the industry, indicating a "Buy" rating for the sector [1]. Core Insights - The report highlights significant developments in the semiconductor and AI sectors, particularly focusing on companies like Wallran Technology and TianShu Intelligent Chip, which are preparing for IPOs and showcasing innovative GPU products [3][28]. - The report emphasizes the rapid growth of revenue in AI-related businesses, with companies like Zhipu and MiniMax leading the way in large model commercialization [39]. Summary by Sections Wallran Technology - Wallran Technology is set to launch its IPO on January 8, 2026, and has developed a range of GPGPU chips and intelligent computing solutions, with significant revenue growth from 0.499 million in 2022 to 58.9 million in 2025H1 [3][4]. - The company has a strong team with backgrounds from major tech firms like AMD and Huawei, focusing on GPGPU architecture and software platforms [4][5]. - Wallran's core products include the BR106 and BR110 series, with a sales volume of 9,344 units for BR106 in 2024 and a projected revenue of 1.24 billion from orders [26][21]. TianShu Intelligent Chip - TianShu Intelligent Chip commenced its IPO process on December 30, 2025, and has developed a comprehensive product line for AI computing, including the TianGai series for training and the ZhiKai series for inference [28][32]. - The company has achieved significant milestones, including the launch of its second-generation training product, TianGai Gen 2, and has a strong financial backing from notable investors [29][32]. - The average selling price for TianGai products is between 30,000 to 40,000 yuan, while ZhiKai products average around 10,000 yuan [34]. Zhipu - Zhipu has established itself as a leader in the B-end localization deployment of AI models, achieving a revenue of 310 million in 2024, with a year-on-year growth of 150.9% [42]. - The company focuses on a comprehensive AI model suite, including language, multi-modal, and intelligent agent models, with a strong emphasis on R&D and high gross margins in localized deployments [41][44]. - Zhipu's models have been adopted by over 8,000 institutional clients, showcasing its significant market presence [47]. MiniMax - MiniMax, founded in 2021, emphasizes efficient model architecture and rapid commercialization of AI products, with a significant portion of its revenue coming from overseas markets [39][50]. - The company has released several innovative products, including the Hailuo AI video generation platform and the M2 series models, which enhance coding capabilities across multiple programming languages [50]. - MiniMax's business model focuses on direct sales and expanding its distribution network, with a notable decrease in revenue concentration from its top clients over recent years [36].

Core Insights - The article discusses the simultaneous IPO applications of two leading AI companies, MiniMax and Zhiyu AI, highlighting the competitive landscape and financial challenges within the AI industry [4][6]. Company Overview - MiniMax, founded in early 2022, has raised over $1.5 billion and holds approximately $1.1 billion in cash, while Zhiyu AI, with a different operational focus, submitted its IPO application just 48 hours earlier [4][6]. - MiniMax focuses on multi-modal models and AI-native products, while Zhiyu AI emphasizes a foundational model and open-source ecosystem [7][9]. Financial Performance - MiniMax reported a loss of $269 million in 2023, projected to increase to $465 million in 2024, and has already incurred a loss of $512 million in the first nine months of 2025, totaling $1.32 billion in cumulative losses [11]. - Zhiyu AI's losses are also significant, with a reported loss of 788 million yuan in 2023, escalating to 2.958 billion yuan in 2024, and 2.358 billion yuan in the first half of 2025, leading to over 6.2 billion yuan in cumulative losses [11]. Industry Challenges - The AI industry faces high operational costs, particularly in research and development, with MiniMax's R&D expenses exceeding 2000% of its revenue at one point, and Zhiyu AI having over 70% of its workforce in R&D [13]. - The rising costs of AI deployment and the uneven distribution of benefits between developers and cloud service providers pose significant challenges to the ecosystem [10]. Market Dynamics - The IPOs of MiniMax and Zhiyu AI are expected to provide a benchmark for valuation in the AI sector, which has struggled with unclear profit models and declining investment in the primary market [14]. - The transition from "storytelling" to "proving commercial value" is anticipated to reshape the industry, with a focus on scalable business scenarios rather than just technological advancements [16]. Future Outlook - The AI industry is at a crossroads, needing to balance cost reduction and efficiency improvements while seeking sustainable commercialization paths [18]. - The upcoming year is seen as pivotal for AI applications, with potential market consolidation and a shift towards efficiency as a competitive advantage [19].

Core Insights - The first large model IPO is set to take place in China, with the AI company Zhipu being the first among the "six small tigers" in the large model sector to initiate the IPO process [5][6] - Zhipu's listing will provide a quantifiable valuation reference for the long-lacking public market in the large model industry, marking a shift from a "technology race" to "capital validation" for China's AI sector [5][6] - Since its establishment in 2019, Zhipu has raised over 8 rounds of funding, accumulating over 8.3 billion RMB, with a pre-IPO valuation of 24.38 billion RMB [5][6] Company Overview - Zhipu is a leading AI company in China focused on developing advanced general large models, aiming for innovation in artificial general intelligence (AGI) [8] - The company provides general large model services to institutional clients and individual users, supporting over 8,000 institutional clients and approximately 80 million devices as of June 30, 2025 [7][8] - According to Frost & Sullivan, Zhipu ranks first among independent general large model developers in China, with a market share of 6.6% [7] Financial Performance - Zhipu's revenue has shown significant growth, with figures of 57.4 million RMB in 2022, 125 million RMB in 2023, and 312 million RMB in 2024, reflecting a compound annual growth rate of over 130% [7][8] - Despite revenue growth, the company reported substantial losses of 144 million RMB, 788 million RMB, 2.958 billion RMB, and 1.236 billion RMB for the years 2022, 2023, 2024, and the first half of 2025, respectively [7][8] Research and Development - Zhipu has made significant investments in R&D, with expenditures rising from 84.4 million RMB in 2022 to 529 million RMB in 2023, and further to 2.195 billion RMB in 2024 [8] - The company’s R&D spending for the first half of 2025 is projected to be 1.595 billion RMB, indicating an 85.6% increase from the previous period [8] Product Offerings - Zhipu's MaaS platform offers four types of models: language models, multimodal models, agent models, and code models, along with integrated tools for model fine-tuning and deployment [9][10] - The platform is designed to provide comprehensive model capabilities, extensive application scenarios, and adaptable computing infrastructure [9][10] Intellectual Property - As of the last feasible date, Zhipu holds 86 registered patents in China, with 84 being invention patents, and has filed 234 patent applications [10]